Nigerian billionaire Aliko Dangote and Kenya’s President William Ruto have opened the green‑light to build a $16bn oil refinery in the coastal town of Lamu, on Kenya’s northern strand. The facility, which is expected to process 700,000 barrels of crude a day, is slated for completion in 2030.
Locals in Lamu walked out in protest over what they say is inadequate compensation for land the refinery will occupy. Defiant, Dangote said the protests were “games played by local marketers and international players” and the project would move forward. He highlighted that the refinery would create 60,000 direct jobs and benefit surrounding communities, even if it relies on imported crude, citing Singapore as an example of a refinery hub without domestic production.
The Lamu refinery will also host a 1,000‑megawatt power plant to meet the energy needs of the plant and nearby industries, addressing a critical bottleneck for African industrialisation. Dangote’s broader vision includes $50bn of projects across Africa, including an ambitious goal of 10,000 MW of power generation capacity by 2030.
While Kenya had not produced oil, the refinery is part of a wider strategy to enhance regional supply chains. Kenya’s Energy Minister Opiyo Wandayi stressed that refineries source crude from open markets, so the plant’s location does not tie it to local production.
